Recitals 2 Article 1 General Provisions 4 a 1 Purpose 4 b 2 Applicable Law and Regulation 4

7.3.2 Non-Recertification Election

For Contractor’s QHPs in CCSB that are certified on a non-calendar year basisplans certified outside of the annual certification timeframe, Contractor shall provide the Exchange with notice of Non-Recertification Election at least six (6) months prior to expiration of the certification for those QHPsrecertification.

b) Continuation and Transition of Care. Except as otherwise set forth in this Section 7.3.2, Contractor shall continue to provide Covered Services to Enrollees in accordance with the terms set forth in the Agreement from and after Contractor’s Non-Recertification Election up through the termination of coverage for Enrollees, as such termination of coverage shall be determined in accordance with the requirements of this section.

Contractor shall take any further action reasonably required by the Exchange to provide Covered Services to Enrollees and transition care following the Non-Recertification Election.

Contractor shall coordinate and cooperate with respect to communications to Enrollees in the Individual Exchange, Employers and Employees in Covered California for Small Business and other stakeholders regarding the transition of Enrollees to another QHP.

c) Individual Exchange. The following provisions shall apply to the Individual Exchange.

i. During the thirty (30) day period following the Exchange’s receipt of the Non-Recertification Election, Contractor shall (i) be removed from the enrollment and eligibility assignment process, and (ii) no longer receive assignment of new Enrollees;

ii. Contractor will provide coverage for Enrollees assigned to Contractor as of the date of the Non-Recertification Election if coverage commences within the sixty (60) day period following the Notice of Non-Recertification. Contractor shall provide coverage for such Enrollees until the earlier of (i) the end of the Contract Year, or (ii) the Enrollee’s transition to another QHP during the Special Enrollment Period; and

iii. Contractor shall provide coverage for Enrollees until the earlier of (i) the end of the Contract Year, or (ii) the Enrollee’s transition to another QHP during Special Enrollment Period.

d) Covered California for Small Business. The following provisions shall apply to the Covered California for Small Business Exchange:

i. In the event that Contractor continues to offer small group coverage in the State following the Notice of Non-Recertification Election, Contractor shall comply with applicable laws, rules and regulations relating to the discontinuation of a benefit package, including those set forth at Section 1365 of the Health and Safety Code and Section 10713 of the Insurance Code.

The termination of the Agreement shall occur upon the termination of coverage which shall be determined as follows:

1. In the event that an Employer’s plan year, as determined in accordance with 45 C.F.R. § 155.725, expires between the July 1 effective date of the Non-Recertification Election and the expiration of the Contract Year on December 31, Contractor shall provide coverage to Employers and Employees until the termination of the Agreement that shall be effective upon the expiration of the expiration of the Employer’s first Pplan yYear that commences after the Non-Recertification Election.

2. In the event that an Employer’s plan year terminates between January 1 and the July 1 effective date of the Notice of Non-Recertification, Contractor shall provide coverage until the termination of the Agreement effective upon the expiration of Employer’s first plan year that commences prior to the July 1 effective date of the Notice of Non-Recertification.

32. In the event that an Employer’s plan year expires more than ninety (90) days following the Notice of Non-Recertification Election, the Exchange Contractor shall notify Employers and Employees that the Contractor’s QHP will not be available for renewal at least ninety (90) days prior to policy expiration. Non-renewal notification must be in a format approved by the Exchange. that Contractor’s QHP will not be available upon the next renewal anniversary date.

ii. Contractor shall comply with other requirements of the Exchange relating to the continuation and transition of coverage following Contractor’s Non-Recertification Election, including, without limitation, those relating to protocols and timing for the removal of Contractor from the listing of QHPs to be selected by Employers and Employees, the commencement of coverage for new Employers and Employees, and termination and transition of coverage.